Mining News: Northern Neighbors: Arcus exchanges shares for Atac’s half of Dawson Gold JV

Arcus Development Group Inc. Aug. 22 announced that it has completed the purchase of Atac Resources Ltd.’s 50 percent interest in the Dawson Gold joint venture, which consists of the Dan Man, Touleary, Green Gulch and Shamrock properties in the White Gold District of Yukon Territory. The Dan Man property is located immediately north of Goldcorp Inc.’s Coffee claims; and Touleary property is the location of the first significant volcanogenic massive sulfide system identified in the White Gold District. In exchange for Atac’s interest in the joint venture, Arcus issued its former partner 10.87 million shares; 5 million warrants, which are exercisable into Arcus shares at C20 cents each for five years; and a 1 percent net smelter return royalty interest in any future production from any of the four properties. With the issuance of the 10.87 million shares, Atac now holds 19.99 percent of the Arcus issued share capital. Atac has provided both Arcus and the TSX Venture Exchange with an undertaking that it will not exercise any of the share purchase warrants if doing so will result in Atac holding 20 percent or more of the issued Arcus share capital following the exercise of the warrants.

-Shane Lasley